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Contract Law
Generally the legal framework for formation of the contracts is clear and allows parties to enter into any kind of contract that does not violate the law or is contrary to public order. The main problem for contracts law is that the legal framework does not have all the provisions necessary for modern contracts, such as leasing and enforcement. Further, the procedures for contract enforcement are complex and lengthy.
Occasionally, special laws impose validity requirements to specific kinds of contracts. Validity requirements mostly relate to notarization of the contract to make it “public.” Those requirements increase the transaction cost and delay the process of conducting business. However, the special requirements do not apply to all contracts and cannot be imposed at the discretion of public officers.
Notary fees are considered high for local standards. Some businessmen complain about the need to use notaries to draft contracts.
Corruption is often mentioned as a problem in the context of not only contract enforcement by courts but also expediting the steps required for making valid or public certain kinds of contracts.
A lack of knowledge also exists with most lawyers, judges, and arbitrators regarding the contractual concepts used in modern international business.
Consequently, some changes are needed to foster the investment opportunities through a reliable and easy contract law system.
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